MGK -- as I was walking the dog, I thought about a
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Posted On: 10/04/2022 10:39:11 AM
MGK -- as I was walking the dog, I thought about another possible trading strategy related to the s-3 filings. Not sure if this is feasible, but will throw it out for others to consider:
150 million out of the 209 million shares registered in the August 23rd s-3 were for people who bought in the Paulson offering between April and July. (Fact from s-3)
They were purchased at prices under 40 cents and had .75 warrant coverage, with prices of 20 to 30 cents (from memory).
From late July to mid-August, the share price was above 70 cents and volume was over 5 million shares on more than half those days.
Is it possible that the Paulson buyers were selling short during that timeframe, at prices above 70 cents? And, that they are now delivering their newly registered shares to cover those short positions?
That could explain their motivation and also the very low volume we are seeing right now. Not sure if what I described is feasible.
I do know for sure that Fife sells short while he is waiting for shares to be registered and delivered, but he is much more sophisticated than most. These Paulson buyers may have been guided by Paulson on the transactions.
What I don't understand is how they got the price to move from 35 cents to 70 cents (and eventually over $1) in June and early July. Seems that they somehow get the momentum building and then "average people" start jumping in and push it up quickly.
150 million out of the 209 million shares registered in the August 23rd s-3 were for people who bought in the Paulson offering between April and July. (Fact from s-3)
They were purchased at prices under 40 cents and had .75 warrant coverage, with prices of 20 to 30 cents (from memory).
From late July to mid-August, the share price was above 70 cents and volume was over 5 million shares on more than half those days.
Is it possible that the Paulson buyers were selling short during that timeframe, at prices above 70 cents? And, that they are now delivering their newly registered shares to cover those short positions?
That could explain their motivation and also the very low volume we are seeing right now. Not sure if what I described is feasible.
I do know for sure that Fife sells short while he is waiting for shares to be registered and delivered, but he is much more sophisticated than most. These Paulson buyers may have been guided by Paulson on the transactions.
What I don't understand is how they got the price to move from 35 cents to 70 cents (and eventually over $1) in June and early July. Seems that they somehow get the momentum building and then "average people" start jumping in and push it up quickly.
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